Showing $A(x,y)A(y,z)=A(x,y)$ for matrix valued function A with following properties

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Suppose we have two matrix valued functions A, B where:

$A:\mathbb{R}^{2}\rightarrow \mathbb{R}^{nxn}$

$B:\mathbb{R}\rightarrow \mathbb{R}^{nxn}$

with $\forall \; x,y \in \mathbb{R}$:

$\frac{\delta A}{\delta x}=B(x)A(x,y)$

$\frac{\delta A}{\delta y}=-A(x,y)B(y)$

$A(x,x)=I$

Show that:

$A(x,y)A(y,z)=A(x,z)$

I'm really at a total loss here, the result seems intuitively wrong.

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Derivate $A(x,y)A(y,z)$ in $y$ direction. This gives zero, using the product rule and the equations you supplied for partial derivations of $A$.

$\frac{∂}{∂y}\left(A(x, y)A(y,z)\right) = \left(\frac{∂}{∂y}A(x, y)\right)A(y,z) + A(x, y)\left(\frac{∂}{∂y}A(y,z)\right) = -A(x,y)B(y)A(y,z) + A(x, y)B(y)A(y,z) = 0$

So you can always replace $A(x,y)A(y,z) = A(x, x)A(x,z) = A(x, z)$ using $A(x, x) = I$.